Keeping same trash service in Rockford may cost residents

Thursday

Jul 18, 2013 at 12:01 AMJul 18, 2013 at 5:02 PM

The two companies, Advanced Disposal and Rock River Environmental Services, gave city officials a run down Wednesday of the services they offer. Representatives explained the pros and cons of various collection options as well as the size of their fleets, employee bases and an overview of their companies.

Greg Stanley

ROCKFORD — No matter what route the city takes for its next 10-year garbage contract, it’s pretty clear that costs are heading up.

Exactly how much more taxpayers will spend for trash collection and disposal will be figured out after the two companies competing to be Rockford’s next hauler formally bid on the contract. It’s also going to depend on what level of service package aldermen decide for the city.

The two companies, Advanced Disposal and Rock River Environmental Services, gave city officials a run down Wednesday of the services they offer. Representatives explained the pros and cons of various collection options as well as the size of their fleets, employee bases and an overview of their companies.

Over the coming weeks City Council members will pick the services they want, and the two companies will name their price.

Since 1999, the city has been signed up for the top package offered — the Cadillac of garbage pick up — where haulers collect any amount of trash, and virtually all kinds of trash, placed out on the curb. Bulk items, like refrigerators and couches, are picked up every week.

Rockford can keep that service, or try for the less expensive tote or cart system, where each household is given a 35-, 65- or 95-gallon trash tote. Depending on the package, households could be limited to that tote and need to buy a sticker for anything extra.

There are a number of options and a plethora of cuts aldermen could demand to get the service or the price they want.

The city could drive down costs by eliminating alley pick up, collecting recyclables only every other week or reducing the amount of bulk pickup. They could make totes optional or have residents pick the size they want.

“The options are completely open,” said John Lichty, president and CEO of Rock River Environmental Services.

Aldermen, for the most part, are reluctant to set restrictions on the amount of trash households can bring out to the curbs.

“The idea that they pick up anything we put out there is fantastic,” Ald. Tom McNamara, D-3, said. “If we try to thin that down it could be really difficult because everyone’s used to it.”

Ald. Venita Hervey, D-5, has said she wants to make sure the city keeps weekly bulk pickup, so those items don’t sit on curbs for weeks at a time.

Ultimately, aldermen will compare the price differences and then decide.
To get the best price, the city may have to change the way it’s billed.

The city has been with Rock River Environmental Services since 1999. The company charges the city by the ton of trash collected. The city then charges households a flat monthly rate, currently $15.50 a month

To Rock River’s loss and the city’s gain, the amount of trash Rockford households have been putting on the curb has dropped significantly since 1999.

In the first year of the contract, Rockford paid $7.9 million for hauling; in 2012 it was down to $6.7 million, despite the cost of collection steadily rising.

If the city tries to pay by tonnage again the companies will likely charge more per ton to protect themselves from future drops, Mayor Larry Morrissey said.

Basically, the city’s not getting away with that again.

The next contract will likely charge the city per household on collection routes.

“If we’re looking for the best price we need to eliminate the variables and unknown risks that cause higher bids,” Morrissey said. “From a pricing standpoint, being charged per-household could provide some predictability.”